The Reserve Bank of India (RBI) recently made public the impending start of the e-rupee launch.
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However, it will have a few tailored use cases designed to stimulate the country’s digital economy. The current decline in the global crypto market coincides with this monumental move.
The end of private crypto due to CBDC?
According to a concept note on Central Bank Digital Currency (CBDC) published by the Reserve Bank of India (RBI), the purpose of the CBDC is to supplement existing currencies rather than replace them. But with the introduction of the e-rupee, the process of making and receiving payments would become more streamlined. Even as it prevents financial crimes like money laundering.
The Indian government stated in the Union Budget that the CBDC would begin operations in the 2022-2023 financial year. Nonetheless, the Indian government has taken a dim view of crypto.
The Indian Finance Minister announced CBDC and a 30% tax on crypto trading profits in his budget speech.
The Deputy Governor of the RBI, Rabi Sankar, reportedly gave a stern warning for the private cryptos, as reported by Coingape earlier. He also speculated that the introduction of CBDC will do away with the need for privately held digital tokens. Sankar also noted that the fact that cryptocurrencies are underpinned by blockchain or other cutting-edge technologies is not sufficient to justify their legality.
Will countries all around the world switch to the unified digital currency?
Most central banks across the world are discussing the pros and cons of issuing currency notes in digital form. RBI has stated that it will provide updates on the e-most rupee’s important characteristics.
More than sixty national central banks are reportedly interested in the CBDC. While some have begun testing it in the wholesale and retail sectors, others are just getting started. But some countries are studying, testing, or launching their own CBDC structure.
Source: Google Trend